The Four Most Dangerous Words in Investing

Every one knows, or should know, that parabolic stock market advances are generally followed by declines of 20 to 50 %. Yet those advances occur and re cur abetted by what i learned in high school english class to call the willing suspension of disbelief. Contributing to euphoria are two further factors, little noted in our time or in past times. The first is the extreme brevity of the financial memory. In consequence, financial disaster is quickly forgotten. And when the same or closely similar circumstances occur again, sometimes in only a few years, they are hailed by a new, often youthful and always supremely self confident generation as a brilliantly innovatev discovery.